CFTC Can not Find Man Accountable for Over $140 Million Crypto Ponzi

The United States Commodity Futures Buying and selling Fee (CFTC) is having bother finding Benjamin Reynolds, who’s allegedly accountable for a cryptocurrency Ponzi scheme price over $140 million.

Monetary information outlet FinanceFeeds reported on Jan. 6 that the CFTC has filed a movement with the New York Southern District Courtroom. Extra exactly, the regulator filed for the service of course of on Reynolds by publication on The Every day Telegraph and increasing for sixty days the time restrict by which the service should be effected on him and his agency.

A serious Bitcoin ponzi scheme

In mid-June, the CFTC launched motion in opposition to the corporate over an alleged $147 million Bitcoin (BTC) Ponzi. The CFTC filed in opposition to the Reynolds with the aforementioned court docket for allegedly defrauding over a thousand buyers of not less than 22,858 Bitcoin.

In a memorandum accompanying the movement, the regulator reportedly explains that it tried to serve Reynolds on the deal with listed as his “service deal with” within the incorporation papers of Management Finance, the agency that managed the scheme. When the method server arrived on the deal with, he found that it doesn’t really exist.

The CFTC additionally tried to e-mail Reynolds on the solely recognized e-mail deal with related to him and his firm, however obtained again an error message indicating that the message couldn’t be delivered. The regulator realized from affected buyers that the Ulsan District Prosecutors’ Workplace in South Korea can be investigating the scheme, however had equally didn’t contact Reynolds.

Cryptocurrency scams

Scammers have lengthy been utilizing the speculative enthusiasm surrounding cryptocurrencies to lure in and defraud unsuspecting buyers. As Cointelegraph reported, Bitcoin rip-off adverts that includes the likeness of Martin Lewis have continued to look on social media regardless of Lewis’ earlier efforts to stop such unlawful practices.

One significantly well-known cryptocurrency-related rip-off is OneCoin, which was a $four billion pyramid scheme. The rip-off was first discovered in Could 2015. Nevertheless, proceedings are still ongoing, and OneCoin’s web site shut down solely at first of December final yr.

Source link